User Account

All Pages

What is the efficient level of milk production

Assignment Help Management Theories
Reference no: EM13877319

Evaluate the following assertion: Profit maximization on the part of a monopolist means that the reduction in a sales tax (which it remits to the government) will not lead to a reduction in its prices.

10. The demand for milk and the total costs of a dairy are specified by the following equations:
P(Q) = 100 - Q TC(q) = 30q

(a) Suppose there is a monopoly in the industry. Derive an equation for marginal revenue of the monopolist. Graph the demand and marginal revenue curves.

(b) Derive the marginal cost (MC) and average cost (AC) of milk production. Graph MC and AC on the same graph as (a).

(c) Show the monopoly's profit-maximizing price ( Pm ) and quantity (Qm ) on the graph. How much are its profits? Show these on the graph. Will these profits persist in the long run? Explain your answer.

(d) What is the efficient level of milk production? Show on the graph the total surplus associated with efficient production. Show the consumer surplus that would result under monopoly.

Indicate the region which is the difference between these two consumer surpluses. Explain what happens to this "missing surplus" under monopoly.

Reference no: EM13877319

Questions Cloud

Write the firm''s marginal revenue function : A firm in a non-competitive market has the total cost function TC = 3 Q- 6Q2+ 50Q + 45. The demand function for this firm's product is P = 35 - 2Q- Write the firm's marginal revenue function.
What happens throughout the eleven-day mourning : What happens throughout the eleven-day mourning period after Ashoke's death? How do friends express their sympathy? What kind of diet do Ashima, Gogol, and Sonia follow? What happens on the eleventh day itself?
How will this role augment physicians practice : Analyze the role of the advanced practice nurse in the changing health care environment. How will this role augment physicians' practice? What implications will the Affordable Care Act have on this new delivery system
Approximate percentages of the microconstituents : For parts (a), (c), (d), (f), and (h) of Problem 10.20, determine the approximate percentages of the microconstituents that form. (a) Rapidly cool to 250(C (480(F), hold for 103 s, then quench to room temperature.
What is the efficient level of milk production : What is the efficient level of milk production and Show on the graph the total surplus associated with efficient production. Show the consumer surplus that would result under monopoly.
Prepare an income statement for the month ended january : Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from requirement 4. Prepare a Statement of Retained Earnings for the month ended January 31, 2015, using the beginning balance given above and the net income ..
Understanding of patient safety standards and practices : Why is it important that health professionals share a common understanding of patient safety standards and practices? What are the policy implications from accepting that "mistakes are normal and all human err"?
What is the profit-maximizing quantity : Indicate on your graph the competitive output and price. Does the public think too much, not enough, or just the right amount of canned cantaloupe is being produced? Explain.
Find the long run equilibrium price for this good : A firm operating in a competitive market has the following long run total cost function TC = Q3- 24Q2+ 200Q Find the long run equilibrium price for this good.

Reviews

Write a Review

Management Theories Questions & Answers

  The assistant personnel manager at columbia packing company.

Please follow the instruction below: Summary Assignment Scenario For this assignment, you are writing as Doug Grant, the Assistant Personnel Manager at Columbia Packing Company.

  Personal mission and vision statements

Personal mission and vision statements

  Recently experienced growth in the number of employees

Your organization has recently experienced growth in the number of employees on its payroll. In response to this, you are beginning the recruitment process for an additional payroll clerk. You would like to create a job analysis before writing any jo..

  Define cqi why is it an organizational philosophy

Define CQI Why is it an organizational philosophy?

  One area of leadership that fairly compelling in the case

one area of leadership that fairly compelling in the case study was how wiedeking took the dramatic step of moving his

  Nike becomes technology company

Nike Becomes Technology CompanyProvide a one-page summary identifying major issues.Answer Case Study Questions 1 through 3 at the end of the case study.

  What actions should jason take to obtain a contractor to do

Jason is the project manager for a manufacturing company. After several weeks of planning sessions, a team member informs him that a part of the production work needs to be outsourced to another company since they don't have the relevant expertise in..

  Develop well written and comprehensive

Develop well written and comprehensive

  Important featurs of vertebrates

Important featurs of vertebrates

  Compare and contrast aggressive and conservativeasset mix

Compare and contrast aggressive and conservativeasset mix strategies.Address the issues of goals, liquidity, and risk.

  During a representation election

During a representation election, votes can be challenged by whom?

  Which is more efficient

European washing machines use less water. Washing machines in the United States take less time. Which is more efficient?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd